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Northwest Bancshares, Inc. Announces Third Quarter 2018 Earnings and Quarterly Dividend

Company Release - 10/22/2018 9:00 AM ET

WARREN, Pa., Oct. 22, 2018 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NasdaqGS: NWBI) announced net income for the quarter ended September 30, 2018 of $27.7 million, or $0.27 per diluted share. This represents an increase of $4.1 million, or 17.6%, compared to the same quarter last year when net income was $23.6 million or $0.23 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2018 were 8.93% and 1.15% compared to 7.81% and 0.99% for the same quarter last year.

Northwest Bank (PRNewsfoto/Northwest Bank)

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.17 per share payable on November 15, 2018, to shareholders of record as of November 1, 2018. This is the 96th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's stock as of September 30, 2018, this represents an annualized dividend yield of approximately 4.0%.

In making this announcement, Ronald J. Seiffert, President and CEO, noted, "Overall we were pleased with the third quarter results despite elevated charge-offs and two large commercial loan payoffs. Net charge-offs of $8.3 million were largely impacted by a $4.6 million write down of a land development loan in our western New York region. The remaining loan amount of approximately $8.4 million also negatively impacted our 90 day delinquency for the quarter. In addition, commercial loan growth for the quarter was stunted by two large payoffs totaling approximately $71.0 million, one in our New York region, which was a previously criticized loan, and one in our corporate finance division in the Pittsburgh market which was refinanced by a bond issuance."

Mr. Seiffert continued "Despite these two challenging circumstances, we still experienced an increase in net income from the prior year and the linked second quarter with earnings per share of $0.27. We were particularly pleased with the expansion of our net interest margin by 6 basis points compared to last year as well as with our efficiency ratio dropping below 60.0%."

Net interest income increased by $2.6 million, or 3.1%, to $85.8 million for the quarter ended September 30, 2018, from $83.2 million for the quarter ended September 30, 2017 primarily due to a $5.4 million, or 6.3%, increase in interest income on loans receivable. This increase was primarily the result of an increase in the average balance of loans receivable of $261.0 million, or 3.4%, and an increase in the average yield on loans receivable of eleven basis points as a result of the recent increases in market interest rates. Partially offsetting this improvement was an increase in interest expense on deposits of $2.4 million, or 42.1%, due to the aforementioned increases in market interest rates. The net impact of these changes caused the Company's net interest margin to increase to 3.92% for the quarter ended September 30, 2018 from 3.86% for the same quarter last year.

The provision for loan losses increased by $4.0 million, or 130.7%, to $7.0 million for the quarter ended September 30, 2018, from $3.0 million for the quarter ended September 30, 2017. This increase is due primarily to the loan write-down discussed above as well as the recalculation of the quantitative and qualitative factors used to determine the allowance for loan losses.

Noninterest income decreased by $2.0 million, or 8.3%, to $22.6 million for the quarter ended September 30, 2018, from $24.6 million for the quarter ended September 30, 2017. This decrease was due primarily to a $1.5 million gain on the sale of investments realized during the quarter ended September 30, 2017. Additionally, trust and other financial services income decreased by $539,000, or 11.2%, compared to the same quarter last year primarily as a result of the sale of the Company's retirement services subsidiary in the fourth quarter of 2017.

Noninterest expense decreased by $2.2 million, or 3.2%, to $66.6 million for the quarter ended September 30, 2018, from $68.8 million for the quarter ended September 30, 2017. This decrease resulted primarily from a $1.2 million, or 86.7%, decrease in restructuring/ acquisition expense due primarily to the restructuring that occurred during 2017, including the closure of the Company's consumer finance subsidiary. Most of the other noninterest expense categories also decreased due to the favorable impact of the changes made in the prior year including the sale of the Company's Maryland branches and retirement services subsidiary, along with the closure of the consumer finance subsidiary.

Income tax expense decreased by $5.4 million, or 43.3%, to $7.0 million for the quarter ended September 30, 2018, from $12.4 million for the quarter ended September 30, 2017. This decrease resulted primarily from the enactment of the Tax Cuts and Jobs Act in December 2017. The Company's effective tax rate, which includes both federal and state income taxes, decreased to 20.2% for the quarter ended September 30, 2018 from 34.5% for the quarter ended September 30, 2017. Additionally, income before tax decreased by $1.2 million, or 3.4%, to $34.8 million for the quarter ended September 30, 2018 from $36.0 million for the quarter ended September 30, 2017.

Net income for the nine month period ended September 30, 2018 was $79.0 million, or $0.76 per diluted share. This represents an increase of $6.7 million, or 9.3%, compared to the nine month period ended September 30, 2017, when net income was $72.3 million, or $0.71 per diluted share. The annualized returns on average shareholders' equity and average assets for the nine month period ended September 30, 2018 were 8.67% and 1.11% compared to 8.16% and 1.01% for the same period last year. This increase in net income was the result of an increase in net interest income after provision of $2.0 million, or 0.8%, a reduction in noninterest expense of $9.9 million, or 4.6%, and a lower effective tax rate as a result of the Tax Cuts and Jobs Act.

Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 162 full-service community banking offices and ten free standing drive-through facilities in Pennsylvania, New York and Ohio. Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed on-line at www.northwest.com.

Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; and (7) increased risk associated with commercial real-estate and business loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands, except per share amounts)



September 30,
 2018


December 31,
 2017


September 30,
 2017

Assets






Cash and cash equivalents

$

73,946



77,710



165,676


Marketable securities available-for-sale (amortized cost of $829,345, $800,094 and $867,311, respectively)

811,556



792,535



869,481


Marketable securities held-to-maturity (fair value of $23,534, $29,667 and $32,282, respectively)

24,222



29,678



31,961


Total cash and cash equivalents and marketable securities

909,724



899,923



1,067,118








Residential mortgage loans held for sale



3,128



1,382


Residential mortgage loans

2,846,834



2,773,075



2,741,844


Home equity loans

1,272,345



1,310,355



1,313,435


Consumer loans

776,049



671,389



673,920


Commercial real estate loans

2,518,066



2,454,726



2,398,886


Commercial loans

582,768



580,736



596,671


Total loans receivable

7,996,062



7,793,409



7,726,138


Allowance for loan losses

(55,975)



(56,795)



(56,927)


Loans receivable, net

7,940,087



7,736,614



7,669,211








Federal Home Loan Bank stock, at cost

15,452



11,733



7,984


Accrued interest receivable

25,798



23,352



22,802


Real estate owned, net

2,486



5,666



5,462


Premises and equipment, net

144,612



151,944



152,761


Bank owned life insurance

170,042



171,547



173,096


Goodwill

307,420



307,420



307,420


Other intangible assets

21,167



25,669



27,244


Other assets

38,543



30,066



26,716


Total assets

$

9,575,331



9,363,934



9,459,814








Liabilities and shareholders' equity






Liabilities






Noninterest-bearing demand deposits

$

1,724,202



1,610,409



1,625,189


Interest-bearing demand deposits

1,499,344



1,442,928



1,451,818


Money market deposit accounts

1,676,845



1,707,450



1,759,395


Savings deposits

1,650,357



1,653,579



1,669,782


Time deposits

1,403,205



1,412,623



1,435,861


Total deposits

7,953,953



7,826,989



7,942,045








Borrowed funds

179,117



108,238



115,388


Advances by borrowers for taxes and insurance

23,297



40,825



21,864


Accrued interest payable

627



460



518


Other liabilities

66,448



68,485



62,939


Junior subordinated debentures

111,213



111,213



111,213


Total liabilities

8,334,655



8,156,210



8,253,967








Shareholders' equity






Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued






Common stock, $0.01 par value, 500,000,000 shares authorized, 103,293,480 shares, 102,394,828 shares and 102,565,667 shares issued and outstanding, respectively

1,033



1,027



1,026


Paid-in-capital

742,863



730,719



728,163


Retained earnings

541,469



508,058



502,265


Accumulated other comprehensive loss

(44,689)



(32,080)



(25,607)


Total shareholders' equity

1,240,676



1,207,724



1,205,847


Total liabilities and shareholders' equity

$

9,575,331



9,363,934



9,459,814








Equity to assets

12.96

%


12.90

%


12.75

%

Tangible common equity to assets

9.86

%


9.68

%


9.55

%

Book value per share

$

12.01



11.79



11.76


Tangible book value per share

$

8.83



8.54



8.49


Closing market price per share

$

17.32



16.73



17.27


Full time equivalent employees

2,133



2,106



2,137


Number of banking offices

172



172



173



 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)



Quarter ended


September 30,


June 30,


March 31,


December 31,


September 30,


2018


2018


2018


2017


2017

Interest income:










Loans receivable

$

90,733



88,106



85,220



87,154



85,373


Mortgage-backed securities

3,572



3,254



3,013



3,016



3,118


Taxable investment securities

814



648



678



805



957


Tax-free investment securities

205



313



390



449



476


FHLB dividends

119



85



97



78



63


Interest-earning deposits

162



469



135



59



244


Total interest income

95,605



92,875



89,533



91,561



90,231












Interest expense:










Deposits

8,233



7,309



6,458



5,971



5,795


Borrowed funds

1,555



1,340



1,308



1,350



1,199


Total interest expense

9,788



8,649



7,766



7,321



6,994












Net interest income

85,817



84,226



81,767



84,240



83,237


Provision for loan losses

6,982



5,349



4,209



6,525



3,027


Net interest income after provision for loan losses

78,835



78,877



77,558



77,715



80,210












Noninterest income:










Gain/ (loss) on sale of investments





153



(369)



1,497


Service charges and fees

13,158



12,908



11,899



12,527



12,724


Trust and other financial services income

4,254



4,050



4,031



4,290



4,793


Insurance commission income

2,046



2,090



2,749



1,874



1,992


Gain/ (loss) on real estate owned, net

(247)



176



(546)



(307)



(193)


Income from bank owned life insurance

1,460



2,333



990



2,295



1,078


Mortgage banking income

82



77



224



225



519


Other operating income

1,804



2,475



2,288



2,370



2,184


Total noninterest income

22,557



24,109



21,788



22,905



24,594












Noninterest expense:










Compensation and employee benefits

37,535



39,031



36,510



39,293



36,556


Premises and occupancy costs

6,821



6,824



7,307



7,293



6,951


Office operations

3,508



3,768



3,408



4,011



3,939


Collections expense

483



434



512



1,179



568


Processing expenses

9,620



9,560



9,706



9,888



9,650


Marketing expenses

1,949



2,014



2,140



2,125



2,488


Federal deposit insurance premiums

721



671



717



724



771


Professional services

2,368



2,819



2,277



2,945



2,321


Amortization of intangible assets

1,462



1,520



1,520



1,575



1,691


Real estate owned expense

205



133



292



195



310


Restructuring/ acquisition expense

186



393





164



1,398


Other expense

1,759



2,620



3,032



2,504



2,156


Total noninterest expense

66,617



69,787



67,421



71,896



68,799


Income before income taxes

34,775



33,199



31,925



28,724



36,005












Income tax expense

7,035



6,900



6,940



6,576



12,414


Net income

$

27,740



26,299



24,985



22,148



23,591












Basic earnings per share

$

0.27



0.26



0.25



0.22



0.23


Diluted earnings per share

$

0.27



0.25



0.24



0.22



0.23












Weighted average common shares outstanding - basic


102,334,954




101,870,043




101,598,928




101,293,307




101,163,534


Weighted average common shares outstanding - diluted


103,942,695




103,424,154




103,136,497




102,643,726




102,564,476












Annualized return on average equity

8.93

%


8.67

%


8.40

%


7.31

%


7.81

%

Annualized return on average assets

1.15

%


1.11

%


1.08

%


0.94

%


0.99

%

Annualized return on tangible common equity

12.07

%


11.74

%


11.47

%


10.05

%


10.74

%











Efficiency ratio *

59.95

%


62.65

%


63.64

%


65.48

%


60.94

%

Annualized noninterest expense to average assets *

2.70

%


2.87

%


2.97

%


2.76

%


2.76

%


* Excludes restructuring/ acquisition expenses and amortization of intangible assets (non-GAAP).

 

 

Northwest Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)



Nine months ended September 30,


2018


2017

Interest income:




Loans receivable

$

264,059



252,838


Mortgage-backed securities

9,839



8,327


Taxable investment securities

2,140



2,944


Tax-free investment securities

908



1,574


FHLB dividends

301



172


Interest-earning deposits

766



1,440


Total interest income

278,013



267,295






Interest expense:




Deposits

22,000



17,086


Borrowed funds

4,203



3,664


Total interest expense

26,203



20,750






Net interest income

251,810



246,545


Provision for loan losses

16,540



13,226


Net interest income after provision for loan losses

235,270



233,319






Noninterest income:




Gain on sale of investments

153



1,517


Service charges and fees

37,965



37,190


Trust and other financial services income

12,335



13,697


Insurance commission income

6,885



7,139


Loss on real estate owned, net

(617)



(490)


Income from bank owned life insurance

4,783



3,798


Mortgage banking income

383



1,193


Gain on sale of offices



17,186


Other operating income

6,567



6,345


Total noninterest income

68,454



87,575






Noninterest expense:




Compensation and employee benefits

113,076



113,003


Premises and occupancy costs

20,952



21,570


Office operations

10,684



12,331


Collections expense

1,429



1,670


Processing expenses

28,886



29,198


Marketing expenses

6,103



7,482


Federal deposit insurance premiums

2,109



2,794


Professional services

7,464



7,348


Amortization of intangible assets

4,502



5,189


Real estate owned expense

630



809


Restructuring/ acquisition expense

579



4,255


Other expense

7,411



8,058


Total noninterest expense

203,825



213,707


Income before income taxes

99,899



107,187






Income tax expense

20,875



34,868


Net income

$

79,024



72,319






Basic earnings per share

$

0.78



0.72


Diluted earnings per share

$

0.76



0.71






Weighted average common shares outstanding - basic


101,937,338




100,921,322


Weighted average common shares outstanding - diluted


103,504,069




102,538,342






Annualized return on average equity

8.67

%


8.16

%

Annualized return on average assets

1.11

%


1.01

%

Annualized return on tangible common equity

11.58

%


11.10

%





Efficiency ratio *

62.06

%


64.45

%

Annualized noninterest expense to average assets *

2.80

%


2.86

%


* Excludes gain on sale of offices, restructuring/ acquisition expenses, and amortization of intangible assets (non-GAAP).

 

 


Northwest Bancshares, Inc. and Subsidiaries

Asset quality (Unaudited)

(Dollars in thousands)



September 30,
 2018


June 30,
 2018


March 31,
 2018


December 31,
 2017


September 30,
 2017

Nonaccrual loans current:










Residential mortgage loans

$

869



669



123



70



318


Home equity loans

496



237



269



615



439


Consumer loans

126



218



178



317



260


Commercial real estate loans

10,905



14,814



11,355



10,080



10,646


Commercial loans

1,972



2,559



2,381



4,178



4,098


Total nonaccrual loans current

$

14,368



18,497



14,306



15,260



15,761












Nonaccrual loans delinquent 30 days to 59 days:










Residential mortgage loans

$

15



89



1,290



509



200


Home equity loans

333



221



232



167



466


Consumer loans

182



192



224



239



200


Commercial real estate loans

3,124



522



975



1,928



597


Commercial loans

150



51



140



25




Total nonaccrual loans delinquent 30 days to 59 days

$

3,804



1,075



2,861



2,868



1,463












Nonaccrual loans delinquent 60 days to 89 days:










Residential mortgage loans

$

547



668



755



703



892


Home equity loans

418



483



465



874



499


Consumer loans

464



194



224



500



405


Commercial real estate loans

1,872



1,682



399



1,104



5,895


Commercial loans

352



380



80



69



3


Total nonaccrual loans delinquent 60 days to 89 days

$

3,653



3,407



1,923



3,250



7,694












Nonaccrual loans delinquent 90 days or more:










Residential mortgage loans

$

13,154



11,822



10,660



13,509



11,785


Home equity loans

5,838



6,729



6,707



7,251



6,295


Consumer finance loans

39



15



3



199



332


Consumer loans

3,535



2,626



2,931



3,617



3,244


Commercial real estate loans

27,122



15,617



16,145



15,361



22,583


Commercial loans

2,714



2,925



3,144



3,140



4,177


Total nonaccrual loans delinquent 90 days or more

$

52,402



39,734



39,590



43,077



48,416












Total nonaccrual loans

$

74,227



62,713



58,680



64,455



73,334












Total nonaccrual loans

$

74,227



62,713



58,680



64,455



73,334


Loans 90 days past maturity and still accruing

195



94



210



502



398


Nonperforming loans

74,422



62,807



58,890



64,957



73,732


Real estate owned, net

2,486



2,722



4,041



5,666



5,462


Nonperforming assets

$

76,908



65,529



62,931



70,623



79,194












Nonaccrual troubled debt restructuring *

$

9,777




10,860



11,217



12,285



17,809


Accruing troubled debt restructuring

19,370



19,802



19,749



19,819



20,660


Total troubled debt restructuring

$

29,147



30,662



30,966



32,104



38,469












Nonperforming loans to total loans

0.93

%


0.79

%


0.75

%


0.83

%


0.95

%

Nonperforming assets to total assets

0.80

%


0.69

%


0.66

%


0.75

%


0.84

%

Allowance for loan losses to total loans

0.70

%


0.72

%


0.70

%


0.73

%


0.74

%

Allowance for loan losses to nonperforming loans

75.21

%


91.28

%


93.75

%


87.43

%


77.16

%


















* Amounts included in nonperforming loans above.













 

 


 Northwest Bancshares, Inc. and Subsidiaries

Loans by credit quality indicators (Unaudited)

(Dollars in thousands)


At September 30, 2018


Pass


Special mention
*


Substandard
**


Doubtful


Loss


Loans

receivable

Personal Banking:













Residential mortgage loans


$

2,835,806





11,028







2,846,834


Home equity loans


1,265,237





7,108







1,272,345


Consumer loans


771,555





4,494







776,049


Total Personal Banking


4,872,598





22,630







4,895,228


Commercial Banking:













Commercial real estate loans


2,283,152



53,529



181,385







2,518,066


Commercial loans


526,584



24,760



31,424







582,768


Total Commercial Banking


2,809,736



78,289



212,809







3,100,834


Total loans


$

7,682,334



78,289



235,439







7,996,062















At June 30, 2018













Personal Banking:













Residential mortgage loans


$

2,790,906





9,762







2,800,668


Home equity loans


1,268,884





7,297







1,276,181


Consumer loans


697,561





3,364







700,925


Total Personal Banking


4,757,351





20,423







4,777,774


Commercial Banking:













Commercial real estate loans


2,294,327



65,698



193,198







2,553,223


Commercial loans


554,495



18,140



38,738







611,373


Total Commercial Banking


2,848,822



83,838



231,936







3,164,596


Total loans


$

7,606,173



83,838



252,359







7,942,370















At March 31, 2018













Personal Banking:













Residential mortgage loans


$

2,755,078





17,070







2,772,148


Home equity loans


1,279,137





9,224







1,288,361


Consumer loans


682,433





3,605







686,038


Total Personal Banking


4,716,648





29,899







4,746,547


Commercial Banking:













Commercial real estate loans


2,256,054



57,690



198,513







2,512,257


Commercial loans


557,613



19,147



46,703







623,463


Total Commercial Banking


2,813,667



76,837



245,216







3,135,720


Total loans


$

7,530,315



76,837



275,115







7,882,267















At December 31, 2017













Personal Banking:













Residential mortgage loans


$

2,758,465





17,738







2,776,203


Home equity loans


1,300,277





10,078







1,310,355


Consumer loans


666,629





4,760







671,389


Total Personal Banking


4,725,371





32,576







4,757,947


Commercial Banking:













Commercial real estate loans


2,216,326



83,537



154,863







2,454,726


Commercial loans


511,035



19,297



50,404







580,736


Total Commercial Banking


2,727,361



102,834



205,267







3,035,462


Total loans


$

7,452,732



102,834



237,843







7,793,409















At September 30, 2017













Personal Banking:













Residential mortgage loans


$

2,725,060





18,166







2,743,226


Home equity loans


1,302,036





11,399







1,313,435


Consumer loans


669,532





4,388







673,920


Total Personal Banking


4,696,628





33,953







4,730,581


Commercial Banking:













Commercial real estate loans


2,196,510



56,118



146,258







2,398,886


Commercial loans


526,824



18,924



50,923







596,671


Total Commercial Banking


2,723,334



75,042



197,181







2,995,557


Total loans


$

7,419,962



75,042



231,134







7,726,138



* Includes $9.2 million, $9.5 million, $7.9 million, $8.6 million, and $8.9 million of acquired loans at September 30, 2018, June 30, 2018, March 31, 2018, December 30, 2017, and   September 30, 2017, respectively.

** Includes $45.3 million, $44.5 million, $45.2 million, $46.7 million, and $48.2 million of acquired loans at September 30, 2018, June 30, 2018, March 31, 2018, December 30, 2017, and September 30, 2017, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Loan delinquency (Unaudited)

(Dollars in thousands)




September 30,

2018


*


June 30,

2018


*


March 31,

2018


*


December 31,
2017


*


September 30,

2017


*

(Number of loans and dollar amount of loans)































Loans delinquent 30 days to 59 days:































Residential mortgage loans


27



$

1,500



0.1

%


30



$

1,561



0.1

%


319



$

27,403



1.0

%


317



$

25,784



0.9

%


44



$

2,771



0.1

%

Home equity loans


184



5,673



0.4

%


184



6,383



0.5

%


200



7,406



0.6

%


218



7,461



0.6

%


191



7,330



0.6

%

Consumer finance loans


280



632



10.7

%


306



711



8.1

%


477



1,288



10.3

%


849



2,128



11.4

%


1,045



3,065



11.4

%

Consumer loans


984



8,408



1.1

%


901



8,855



1.3

%


871



8,252



1.2

%


1,295



10,912



1.7

%


1,119



9,510



1.5

%

Commercial real estate loans


36



5,386



0.2

%


40



5,898



0.2

%


58



20,303



0.8

%


53



8,315



0.3

%


27



5,753



0.2

%

Commercial loans


17



622



0.1

%


24



1,000



0.2

%


35



2,912



0.5

%


26



1,865



0.3

%


16



746



0.1

%

Total loans delinquent 30 days to 59 days


1,528



$

22,221



0.3

%


1,485



$

24,408



0.3

%


1,960



$

67,564



0.9

%


2,758



$

56,465



0.7

%


2,442



$

29,175



0.4

%
































Loans delinquent 60 days to 89 days:































Residential mortgage loans


61



$

4,704



0.2

%


62



$

5,847



0.2

%


21



$

1,943



0.1

%


75



$

6,235



0.2

%


84



$

7,196



0.3

%

Home equity loans


69



2,536



0.2

%


73



2,495



0.2

%


52



2,040



0.2

%


72



2,871



0.2

%


73



2,390



0.2

%

Consumer finance loans


112



234



4.0

%


127



277



3.2

%


109



233



1.9

%


412



1,113



6.0

%


831



2,190



8.1

%

Consumer loans


352



3,251



0.4

%


350



2,654



0.4

%


296



2,259



0.3

%


463



3,351



0.5

%


473



3,283



0.5

%

Commercial real estate loans


30



6,678



0.3

%


28



3,689



0.1

%


23



1,809



0.1

%


25



2,539



0.1

%


22



7,666



0.3

%

Commercial loans


21



1,104



0.2

%


15



926



0.2

%


7



196



%


10



441



0.1

%


9



196



%

Total loans delinquent 60 days to 89 days


645



$

18,507



0.2

%


655



$

15,888



0.2

%


508



$

8,480



0.1

%


1,057



$

16,550



0.2

%


1,492



$

22,921



0.3

%
































Loans delinquent 90 days or more: **































Residential mortgage loans


143



$

13,483



0.5

%


140



$

12,293



0.4

%


127



$

10,791



0.4

%


158



$

13,890



0.5

%


143



$

12,190



0.4

%

Home equity loans


150



5,838



0.5

%


154



6,768



0.5

%


148



6,750



0.5

%


177



7,349



0.6

%


150



6,397



0.5

%

Consumer finance loans


16



39



0.7

%


8



15



0.2

%


7



3



%


74



199



1.1

%


124



332



1.2

%

Consumer loans


766



3,541



0.5

%


302



2,633



0.4

%


659



2,939



0.4

%


719



3,627



0.6

%


428



3,254



0.5

%

Commercial real estate loans


126



27,228



1.1

%


113



15,772



0.6

%


106



16,723



0.7

%


109



16,284



0.7

%


113



23,310



1.0

%

Commercial loans


29



2,714



0.5

%


31



2,925



0.5

%


35



3,144



0.5

%


37



3,140



0.5

%


45



4,177



0.7

%

Total loans delinquent 90 days or more


1,230



$

52,843



0.7

%


748



$

40,406



0.5

%


1,082



$

40,350



0.5

%


1,274



$

44,489



0.6

%


1,003



$

49,660



0.6

%
































Total loans delinquent


3,403



$

93,571



1.2

%


2,888



$

80,702



1.0

%


3,550



$

116,394



1.5

%


5,089



$

117,504



1.5

%


4,937



$

101,756



1.3

%


* Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.

** Includes purchased credit impaired loans of $440,000, $672,000, $760,000, $1.4 million and $1.2 million at September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, respectively.

 

 

Northwest Bancshares, Inc. and Subsidiaries

Allowance for loan losses (Unaudited)

(Dollars in thousands)



Quarter ended


September 30,
 2018


June 30,
 2018


March 31,
 2018


December 31,
 2017


September 30,
 2017

Beginning balance

57,332



55,211



56,795



56,927



62,885


Provision

6,982



5,349



4,209



6,525



3,027


Charge-offs residential mortgage

(214)



(389)



(201)



(162)



(215)


Charge-offs home equity

(426)



(406)



(611)



(393)



(528)


Charge-offs consumer finance

(445)



(486)



(1,553)



(2,900)



(3,891)


Charge-offs consumer

(3,470)



(2,682)



(3,249)



(3,322)



(3,002)


Charge-offs commercial real estate

(4,859)



(439)



(551)



(1,470)



(1,901)


Charge-offs commercial

(985)



(491)



(1,025)



(785)



(509)


Recoveries

2,060



1,665



1,397



2,375



1,061


Ending balance

$

55,975



57,332



55,211



56,795



56,927












Net charge-offs to average loans, annualized

0.42

%


0.16

%


0.30

%


0.34

%


0.47

%




















Nine months ended September 30,


2018


2017

Beginning balance

$                56,795



60,939


Provision

16,540



13,226


Charge-offs residential mortgage

(804)



(877)


Charge-offs home equity

(1,444)



(1,866)


Charge-offs consumer finance

(2,484)



(5,469)


Charge-offs consumer

(9,401)



(8,601)


Charge-offs commercial real estate

(5,849)



(2,704)


Charge-offs commercial

(2,501)



(2,705)


Recoveries

5,123



4,984


Ending balance

$

55,975



56,927



0.29

%


0.30

%

Net charge-offs to average loans, annualized














September 30, 2018


Originated loans


Acquired loans


Total loans


Balance


Reserve


Balance


Reserve


Balance


Reserve

Residential mortgage loans

$

2,749,012



4,144



97,822



102



2,846,834



4,246


Home equity loans

1,048,373



3,234



223,972



408



1,272,345



3,642


Legacy consumer finance loans

5,888



1,650







5,888



1,650


Consumer loans

702,941



11,021



67,220



444



770,161



11,465


Personal Banking Loans

4,506,214



20,049



389,014



954



4,895,228



21,003














Commercial real estate loans

2,277,429



25,694



240,637



2,876



2,518,066



28,570


Commercial loans

532,764



5,730



50,004



672



582,768



6,402


Commercial Banking Loans

2,810,193



31,424



290,641



3,548



3,100,834



34,972














Total Loans

$

7,316,407



51,473



679,655



4,502



7,996,062